Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Markets / Industries / Finance

Monday, July 21, 2008

CIT Provides Financing to Snoqualmie Tribe Casino

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Comtex

NEW YORK & SEATTLE, Jul 21, 2008 (BUSINESS WIRE) ----CIT Group Inc. (NYSE: CIT), a leading global commercial finance company, today announced that it has provided a senior secured credit facility to the Snoqualmie Entertainment Authority to complete its development of the Snoqualmie Tribal Casino in Seattle, WA. Terms of the transaction were not disclosed.

Financing was completed on behalf of CIT Communications Media & Entertainment, which acted as co-lead arranger for the transaction. The proceeds of the facility will be used to purchase all essential gaming equipment and certain furniture, fixtures and equipment.

"The Snoqualmie Tribe has been working for decades to establish a premier entertainment center to support tribal economic development," said Steve Reedy, Managing Director of CIT Communications Media & Entertainment, Gaming and Leisure. "We are pleased with this financing that will provide support to the Snoqualmie Indian Tribe as it completes the development of this high-end Native American casino."

Michael Barozzi, CEO of Snoqualmie Entertainment Authority, said, "We selected CIT over other lenders because of the firm's rich knowledge and experience in the gaming business. We felt confident choosing CIT because of the team's successful track record of supporting other gaming enterprises, specifically in the Indian casino space."

Individuals interested in receiving future updates on CIT via e-mail can register at http://newsalerts.cit.com.

About Snoqualmie Entertainment Authority

The Snoqualmie Entertainment Authority is responsible for the financing, construction, development and opening of Casino Snoqualmie. The Snoqualmie Entertainment Authority is an entity owned by the Snoqualmie Indian Tribe.

About Snoqualmie Tribe

The people known today as the Snoqualmie Tribe have lived in the Puget Sound region since time immemorial, long before the early explorers came to the Northwest. The Snoqualmie Tribe currently has approximately 650 members. The Tribe is governed by a Tribal constitution and elected Council. The Tribe's governing structure includes building codes, health codes and other standard governmental functions.

About CIT Communications, Media & Entertainment

CIT Communications, Media & Entertainment provides comprehensive financial and advisory solutions to the broadcasting, publishing, information services and technology, sports, gaming and communications industries.

About CIT

CIT (NYSE: CIT) is a global commercial finance company that provides financial products and advisory services to more than one million customers in over 50 countries across 30 industries. A leader in middle market financing, CIT has more than $70 billion in managed assets and provides financial solutions for more than half of the Fortune 1000. A member of the S&P 500 and Fortune 500, it maintains leading positions in asset-based, cash flow and Small Business Administration lending, equipment leasing, vendor financing and factoring. The CIT brand platform, Capital Redefined, articulates its value proposition of providing its customers with the relationship, intellectual and financial capital to yield infinite possibilities. Founded in 1908, CIT is celebrating its Centennial throughout 2008. www.cit.com

SOURCE: CIT Group Inc.

CIT Media Relations: C. Curtis Ritter Director of External Communications
   & Media Relations 212-461-7711 curt.ritter@cit.com or Dan Infanti Vice President, Director of Brand Marketing 212-461-5663
   dan.infanti@cit.com or CIT Investor Relations: Ken Brause Executive Vice President 212-771-9650 Ken.Brause@cit.com

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